Naira Weakens to 364/dollar despite CBN Injections

The naira weakened to 364 per United States Dollar at the parallel market on Monday, despite the injection of $210m into the Interbank Foreign Exchange Market by the Central Bank of Nigeria.

This latest injection came barely two trading days after the CBN injected $262.5m into the inter-bank Foreign Exchange Market.

The CBN had on Friday made its first Retail Secondary Market Intervention sales on Friday.

The local currency had closed at 363/dollar at the parallel Market in the past two weeks.

The naira is expected to be largely unchanged for Foreign Investors this week after a slow start of trading at the beginning of the year.

The naira traded at 360 to the dollar at the Investors and Exporters FX window, compared with last week’s close of 362/dollar.

Traders said volumes were low but foreign Investors have resumed selling which would help boost dollar liquidity on the currency market.

On the official market, it was quoted at 305.80, supported by the CBN’s regular intervention.

The naira closed at 363/dollar at the parallel market on Friday.

Figures obtained from the CBN on Monday indicated that it offered $100m to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises segment received the sum of $55m.

Customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance, among others, were also allocated the sum of $55m.

The Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, confirmed the figures, adding that those who made bids in the wholesale window would receive value for the bids on Tuesday.

Okorafor reassured the public that the Bank would continue to intervene in the Inter-Bank Foreign Exchange Market in line with its resolve to sustain liquidity in the market and maintain stability.

According to him, the steps taken so far by the CBN in forex management has yielded many positives, particularly as it has to do with reduction in the country’s import bills and accretion to its foreign reserves.

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